18 ordspråk av Ian McCafferty

Ian McCafferty

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With energy costs up sharply in recent months and some disappointing developments in the global economy, there is no doubt UK manufacturers still face a challenging business environment. Nevertheless, this survey provides some encouraging news.

There are emerging signs that the hard-pressed manufacturing sector is improving.

We understand that the MPC must make difficult choices. But there is a clear risk that without corrective action the upward trend in unemployment would accelerate. We continue to believe that a cut in interest rates will be needed in the next few months, and we urge the MPC to consider early action.

The increase in business with private individuals in the past three months is striking, and partly reflects the pick-up in the housing market from last year's low.

We think there's room for a small cut and look to the Bank to do so if there's no sign of a pick-up in momentum in the economy.

We are disappointed that the Bank did not take the opportunity to provide some support for the fragile economy.

There are glimmers of hope on the horizon for manufacturers who have endured a long-lasting downturn. But at a time when commodity and energy prices continue to rise unabated, UK manufacturing is not out of the woods yet.

There are glimmers of hope on the horizon for manufacturers who have endured a long-lasting downturn.

Although it is too early to say if this month's decline in export demand is the start of a trend, the fall is a further blow for manufacturers at a difficult time. Firms will be hoping this is not the first sign of slow-down in the global economy in the face of the latest oil price increases.

Only two of the 10 industry groups surveyed this month - chemicals and metal products - expect prices to rise in their sector over the coming three months. Cost pressures from high oil and transportation prices will only serve to depress profits further,

The service sector in recent years has been an important driver of growth,

With retailing and manufacturing both very weak, the fact that services are slowing is particularly worrying.

A combination of weak consumer spending and challenging world markets is weighing on UK manufacturing.

Christmas, in retailing terms, is coming later and later each year as consumers play chicken with the high street and delay their spending in the expectation of late price cuts as the big day draws nearer.

The sustained high level of oil and sharply increased gas prices have driven up energy and raw material costs and manufacturers are continuing to respond by cutting employment to curb the wage bill and boosting investment in efficiency-improving measures.

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